The Union Government, the Asian Development Bank and the Rajasthan Government on 17 March 2011 signed a loan agreement for the ongoing Rajasthan Urban Sector Development Investment Program (RUSDIP).

The ADB has approve a $63 million (approx Rs 283.5 crore) loan for the Rajasthan Urban Sector Development Investment Program, Tranche III under RUSDIP. The funds are to be used to upgrade water supply, sewerage and sanitation, urban drainage, urban transport, solid waste management, and firefighting facilities in the state.

The water upgrades, focused on Baran and Chittorgarh, include new treatment plants, the rehabilitation of a distribution network and the installation of new connections in slums and low income areas. Under the sewerage and sanitation component, covering five towns, over 300 km of sewer pipelines will be laid and a sewage treatment plant will be built. Work under the Tranche III of the program is expected to be completed by December 2014.

The multi-tranche financing facility of $273 million (approx 1,228.5 crore) for the investment program was approved in 2007. It is funding infrastructure improvements in 15 towns in the state. The towns include Alwar, Baran, Barmer, Bharatpur, Bundi, Chittorgarh, Churu, Dholpur, Jaisalmer, Jhalawar, Karauli, Nagaur, Rajsamand, Sawai Madhopur and Sikar.